The Single Touch regime takes a company’s reporting to the next level. While this will be a welcome change for employees, small businesses will unfortunately experience an increase in compliance obligations. Now small businesses will need to flag cash flow difficulties and highlight steps that small businesses will need to manage.
For small businesses that are struggling with cash flows, the new requirements will demand these businesses to undertake careful planning. This may mean reducing staff or undertaking further activities to improve the business’ financial performance.
From 1 July 2018:
- Employers with 20 or more employees are required to report to the Australian Taxation Officer Commissioner through Single Touch Payroll-enabled software.
- The following information must be reported on or before the day you withhold from a payment (the pay day):
- payment information, including salary or wages, allowances, deductions, etc.;
- withholding amounts; and
- superannuation liability information or Ordinary Times Earnings.
- Employers who fully report all the information required through Single Touch Payroll will not have to comply with a number of other reporting obligations under the existing law. This includes providing certain payment summaries and the corresponding Payment Summary Annual Report. They will need to provide a finalisation declaration to the ATO.
From 1 July 2019 this will apply to all businesses.